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Target Profit Halves as Rising Costs Hit Margins, Shares Slide 24%

U.S. News & World Report

By Aishwarya Venugopal and Uday Sampath Kumar

(Reuters) -Target Corp's quarterly profit halved and it warned of a bigger margin hit on Wednesday due to rising fuel and freight costs, in a clear sign there would be no immediate relief for U.S. retailers from surging inflation.

Shares tumbled 24% following the bleak results that came a day after larger rival Walmart Inc cut its annual profit view and its shares logged their worst day since 1987, though both retailers clocked better-than-expected quarterly sales.

"We were less profitable than we expected to be or intend to be over time," Target Chief Executive Brian Cornell said.

"These (costs) continue to grow almost on a daily basis and there is no sign right now...that it is going to abate over time."

John wrote: Wed May 18, 2022 1:09 pm The Dow is falling, falling, falling. Now at 891 down,
ready to be 900 down.

How far down will it go?

Cool Breeze wrote: Wed May 18, 2022 6:29 pm Like everything and everyone else, I'm just guessing here in the day by day to month by month stuff, but I see one last bounce.

As you all know my prediction was always the bigger of the kahunas happen Q1-2 2023. There's a chance we get a bounce by the end of summer and then in Sept-Oct of this year a bombastic blast from the past, as has happened in election cycles before, though the last time it was a presidential one.